Deckers Builds Momentum Through Innovation & Customer-Focused Strategy

Core Insights - Deckers Outdoor Corporation (DECK) is experiencing strong growth driven by the success of its UGG and HOKA brands, international expansion, and a focus on direct-to-consumer (DTC) sales [1][2][12] - The DTC channel is a significant contributor to Deckers' performance, with net sales rising 17.9% to $1.01 billion in Q3 of fiscal 2025 [2] - The company is investing in e-commerce and loyalty initiatives, enhancing customer acquisition and retention [3] Brand Performance - Deckers maintains a balanced portfolio with UGG leading in premium lifestyle footwear and HOKA growing rapidly in high-performance footwear, with HOKA growing 23.7% and UGG 16.1% year-over-year in Q3 [4][5] - The company has achieved full-price sell-through rates, reflecting strong brand equity and disciplined inventory management [5] International Expansion - International markets are increasingly important, particularly for HOKA, which is expanding globally with effective wholesale strategies [6] - UGG is also targeting high-opportunity regions like China for sustained international growth [7] Product Innovation - Product innovation is central to Deckers' strategy, with HOKA launching new performance products and UGG expanding into new segments like sneakers and men's styles [8][9] Financial Position - As of December 31, 2024, Deckers reported $2.24 billion in cash and no debt, allowing for growth investments and shareholder returns [10] - The company repurchased approximately 275,000 shares for $44.7 million, with $640.7 million remaining in its share repurchase authorization [10][11] Growth Projections - Deckers forecasts a 15% year-over-year revenue increase to $4.9 billion for fiscal 2025, with HOKA expected to grow 24% and UGG 10% [12] - The gross margin is anticipated to improve to 57%, up from 55.6% last year, with EPS forecasted to rise to $5.75-$5.80 [13]